However, many industry analysts believe that the acquisition is more customer-driven than technology-driven. A letter to Oracle's customers even stated that the acquisition is customer-driven.
'We think OnDemand is going to be increasingly important. We think the Siebel OnDemand products are improving at a very rapid rate, and we intend to invest in them heavily,' continues Ellison.
Siebel's competitor -- Salesforce.com -- tends to disagree. 'Siebel OnDemand is a joint venture between Siebel and IBM. OnDemand is written exclusively on DB2 and Websphere, and runs in IBM data centers. Oracle does not support DB2, so OnDemand will be the first product to bite the dust,' says Marc Benioff, Salesforce.com CEO.